Because of the market's volatility in recent weeks, investors are
more skittish. One area where they haven't lost interest is the
corporate bond exchange traded fund (
) market, which has helped push corporations to record levels of
cash. U.S. companies are holding more cash in the bank than at any
point on record, thanks to renewed confidence in corporate bonds.
Although companies have the cash needed to hire or expand, they are
timid to spend it while there's so much doubt about the economic
recovery's pace. [
New International Corporate Bond ETFs.
Having money to spend but not using it is coming at a price,
says Justin Lahart for
The Wall Street Journal
. That cash is earning next to no interest, which in the long run
will make it a challenge to generate the returns that shareholders
expect. That means sooner than later, those corporations will have
to let the cash go to work. [
5 ETFs Where You Can Find Income.
In the end, companies who are willing to part with their cash
will help determine the strength of the economy's recovery. That
cash could generate jobs, which will in turn support consumer
For more stories about corporate bonds, visit our
bond ETF category
PowerShares High-Yield Corporate Bond (NYSEArca:
Vanguard Short-Term Corporate Bond (NYSEArca:
SPDR Barclays Capital Short-Term Corporate Bond
iShares iBoxx $ Investment Grade Corp Bond ETF
iShares iBoxx $ High Yield Corporate Bond (NYSEArca:
For full disclosure, Tom Lydon's clients own shares of
Tisha Guerrero contributed to this article.